Bitcoin is zero - Kenyan communication strategist warns African investors for caution -
Bitcoin is zero - Kenyan communication strategist warns African investors for caution -
A Kenyan communication strategist, Mwoia Ciugu, has advised African investors to be careful, to invest in bitcoins, which he claims to be worth zero.
Bitcoin structurally unable to keep his promise
In a (n op-ed Elephant, insists on it Bitcoin (BTC) is structurally able to adhere to an alternative value -related or inflation protection. Also that Bitcoin fails as a currency and as an investment.
Although he admits that Africa is one of the highest acceptance rates for However, cryptocurrencies warns Ciugu that the volatility and scalability problems of top cryptocurrency mean that it cannot act as a currency. Ciugu is quoted and explained:
Bitcoin as a currency fails on two things: volatility and scalability concerns. In the 12 years of its existence, Bitcoin retained an extremely high volatility, ie 60 to 100 percent of the year.
To further underpin this point, Ciugu refers to the US dollar, of which he claims that he has "an annualized volatility of 17". " With regard to the scalability problems of the crypto asset, Ciugu predicts the common arguments on the inefficient use of electricity by bitcoin and how this disqualifies as a currency for everyday transactions.
Bitcoin useful for cross -border transfers
Meanwhile, the strategist denies that Bitcoin is now in El Salvador, the first country in the world that is used to a large extent explain legal means of payment. According to Ciugu, the US dollar is still the dominant currency in El Salvador. Despite these arguments, Ciugu surprisingly agrees that sending transfers via Bitcoin is more cost -effective than the use of regular transmission channels. He explained:
The use of Bitcoin in this country primarily serves to transfer citizens working abroad to their families at home. These citizens rely on Bitcoin in cross -border money transfers to avoid the high costs associated with such transactions, and also because most citizens of El Salvador, ie 70 [percent] have no bank accounts.
Why does he believe that the cryptocurrency is worth zero, Ciugu uses the billionaire Warren Buffet Past comments About Bitcoin to argue his point of view. In his previous comments, Buffet had indicated that the crypto-asset had characteristics of a pyramid system because it does not produce anything. Just like Buffet, the strategist believes that Bitcoin investors have no expectations of making future profits, except by participating in zero-sum games with other speculators.
The strategist also points out how Bitcoin has crashed, as Elon Musk expressed his concerns regarding the crypto-assets energy consumption . According to Ciugu, such a reaction means that Bitcoin is more susceptible to moods than for actual fundamental data.
The strategist ends this long article with the admission that Bitcoin will probably reach the $ 100,000 mark in the near future, as some analysts say predict . However, Ciugu argues that even if Bitcoin should achieve such a milestone, this "will not have any influence on the persistent truths" that he has formulated.
Do you agree to Ciugus views? Tell us your opinion in the comment area below.
Bedy verification : Shutterstock, Pixabay, Wiki Commons